Rakhi system
The Rakhi system was a tributary protectorate scheme practiced by the Dal Khalsa of the Sikh Confederacy in the 18th century. It was alternatively called the Jamadari system.
Background
Due to the invasions of Ahmad Shah Abdali, administration in the Punjab had broken down considerably and many bandits, "brigands", and "highwaymen" ran amok terrorizing and stealing from the local population. The situation with the local government was no better; the poor administration of Mir Mannu's widow, Mughlani Begum, and the antics of Adina Beg, further worsened the local conditions in the land of five rivers. The Mughal officials had become titular in their positions and had no real control or authoritative power any longer. Furthermore, the local economy was in tatters, revenue collection by officials had ceased to function, and powerful feudal lords, named zamindars, were exploiting the peasantry. To meet the demand for authority in light of these circumstances, the Dal Khalsa dedicated one or more units to the cause. Thus, the Rakhi system came into being. The system officially began in the regions under Sikh-rule through the passing of a Gurmata pronouncement of the Sarbat Khalsa in the year 1753. It was an improved replacement to the Chauth system. Whilst the Chauth system of the Marathas offered civil administration and the deployment of its soldiers in a given area, it did not offer or guarantee the locals protection from foreign invaders or internal troublemakers, in-contrast to the Rakhi system which covered these areas as well.Purpose
The Sardar in-which the Rakhi tax was paid to by the locals was obliged to protect them from "plunder, theft, or molestation" from within the community or by outsiders. Folks from all backgrounds were afforded protection by the Khalsa through the Rakhi arrangement; from various religious backgrounds to various social classes. The protectees had their physical lives, real-estate, and chattel under protection by the Khalsa. In-practice, it acted effectively as a "parallel government" and constituted a large source of income for the Sikh Misls. The system was popular amongst the Punjabi masses, who saw it as an alternative to the “cruel” Mughal governance that existed prior. Eventually, four out of the five doabs of the Punjab were under the firm grip of the Rakhi system. The Sikh leaders also constructed many fortresses during this time. If an area paid the Rakhi tax to a Sikh chief, other groups of Sikhs would respect this agreement and not plunder or pillage the region, as they respected the Rakhi system's binding agreement between the local inhabitants and its protector.Mughals and Muslim Rajputs did not agree to come under the protection of the Sikhs nor pay the Rakhi so they were expelled from the areas they inhabited which came under Sikh control. Those expelled often consisted of the people who had occupied the dwellings and properties of past Sikhs, who had fled in years prior in the face of oppression by the Mughal and Afghan empires.
Adina Beg, the last Mughal governor of the Punjab, had paid the Rakhi tax, in an amount of 1.25 lakh rupees for the Jalandhar Doab, as a reward to the Sikhs for helping him earlier. He also distributed karah parshad worth 1,000 rupees during festivities.